Stock Market Finishes Week Higher

NEW YORK — The stock market traded in a narrow range during most of the week but falling interest rates helped push the Dow Jones industrial average to record highs on Thursday and Friday.

The Dow finished the week up 10.98 points at an unprecedented 1,335.46.

Interest rates fell as government reports continued to give off mixed signals about the economy.

Early in the week the Federal Reserve Board said durable goods orders surged 4.1 percent in May. But later the Fed reported the nation`s M-1 money supply declined $1.5 billion in the week ended June 17, a bigger-than-expected drop and the first decline in two months. The Commerce Department reported the index of leading economic indicators had risen 0.7 percent and that the trade deficit had widened another $12.67 billion in May.

On the trading floor, AT&T was the most active NYSE-

listed issue, losing 37.5 cents to $24.62 in the face of threatened increased competition in the long-distance market.

American Hospital Supply followed, up $4 to $41.75 after Baxter Travenol said Thursday it would sweeten its $3.6 billion acquisition offer. Baxter Travenol eased 50 cents to $16.37. Hospital Corp. of America, which also has bid for American Hospital Supply, added 50 cents to $49.25.

American Medical Instruments was third, up $1 to $26.62.

After advancing $10.75 last Friday on rumors that Philip Morris would buy it, General Foods receded $1.37 to $83.75. Among other food stocks, however, Wrigley added $4.62 to $74 and General Mills $4.37 to $63.62.

Fueled by takeover rumors, Northwest Airlines lifted off with an $6.87 gain to $54.12. Pan American World Airways added 62.5 cents to $7.12 in active trading.

Composite volume for the week was 625.39 million shares, up from 619.65 million a week earlier.

Big Board volume totaled 518.34 million shares, compared with 510.29 million last week and 402.66 million during the same week a year ago.

The New York Stock Exchange composite index was up 1.26 to 111.11 for the week and the Standard & Poor`s 500-stock index increased 1.80 to 125.95, a new high.

On the American Stock Exchange, the market value index moved up 5.22 to 239.89. Advances outpaced declines 414-296 among the 900 issues traded. Volume totaled 26.04 million shares compared with 34.35 million last week and 23.97 million during the same week a year ago.